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HomeMy WebLinkAbout30-City Adminstrator -. .; CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Shauna Clark City Administrator Subject: Proposed actions relative to demolition of properties in Arden/Guthrie area. Dept: ORIGINAL Date: September 27, 1996 . , Syno"sis of Previous Council action: 9/23/96: After an appeal hearing, Mayor and council sustained the decision of Board of Building commissioners ordering the rehabilitation and/or demolition of twenty buildings in Arden and Guthrie 9/23/96 : Mayor an~ Council adopted Urgency Ordinance which modified purchasing procedures for demolitions. KAYOR AND COMKON COUNCIL 1. That the Council ratify the actions of the city Administrator relative to the issuance of Purchase Orders for demolition costs related to 6 of the 20 properties at Arden Guthr~e area in an amount of $149,255; and 2. That the city Administrator be authorized to execute the necessary purchase orders to demolish the remaining structures authorized for demolition on September 23, 1996, in the Arden Guthrie area, in an amount not to exceed $350,000: and COMKUNITY DEVELOPMENT COMKISSION 3. That the Community Development commission reimburse the city for all costs incurred in connection with demolition of the structures in the Arden Guthrie area. ~Pd/I!!uA1/ Contact person: Shauna Clark Phone: 5122 Supporting data attached: yes Ward: 7 FUNDING REOUIREMENTS: Amount: Source: (Acct. No.l (Acct. DescriDtion) Finance: Council Notes: Agenda 1 tem No /O/7/Q/p 30 ? STAFF REPORT On September 23, 1996, the Mayor and Common Council sustained the July 18, 1996 Board of Building Commissioners' order on eighteen properties in the Arden/Guthrie Area and sustained the July 19, 1996 and December 22, 1995 Board of Building Commissioners' orders on two other Arden/Guthrie properties. In addition, the Council adopted an urgency ordinance that revised the purchasing procedures to remove the requirement for demolitions to be handled under the standard purchasing procedure. Since the requirement to solicit bids for demolitions was removed as part of the urgency ordinance, staff contacted two demolition contractors with recent experience in Arden/Guthrie to negotiate a price for the demolition of the initial group of structures. A price was negotiated for six of the units but with a contingency that the price would rise in the event that asbestos removal became necessary. The asbestos survey for all of the units had been completed prior to the council action, however, the reports were not received prior to the negotiations with the demolition contractors. AQMD was contacted with a request to waive the 10 day waiting period on the asbestos report, which was granted. survey results indicated that asbestos was present in the initial six structures. This finding required staff to contact an asbestos abatement contractor to negotiate a separate contract for asbestos removal. On September 24, 1996, the City Attorney's Office obtained demolition warrants on the properties. The warrants read in part: 1. The asbestos removal and demolition warrant must be served within ten (10) days of the date hereof, and the demolition to be concluded within twenty (20) days. Due to the urgency, the following contracts were issued under the City Administrator's signature: Demolition .DuWayne Olson -Interstate Field Services .Ground Zero $29,995 $22,500 $ 6,990 Asbestos removal -Brickley Environmental .Fresh Air Environmental Solutions -Scott Morrison & Assoc. .AMS NATEC $58,500 $26,950 $ 1,440 $ 2.880 TOTAL $149,255 It is requested that the Council ratify the actions of the City Administrator relative to the issuance of the PO's for the demolition and asbestos removal which have been contracted for to date. (six units) with respect to the remaining structures, asbestos survey reports were submitted to the planning/Building Services department on September 26, 1996. These reports, which indicate a significant amount of asbestos in the remaining units, will be included with the demolition specifications and submitted to demolition vendors immediately in order to establish demolition process for the structures. Since the costs to abate asbestos are not known at this time, staff has established a not to exceed figure of $350,000 for the remaining structures. It should be noted that this figure assumes that asbestos removal costs will approximate quotes received on first six units. The difficulty in expediting demolitions is that staff does not have the ability to prepare specifications and solicit enough bids to obtain the best prices; rather they are forced to negotiate a price with a single vendor which often leads to higher prices. As an example, EDA recently went through a bid process to demolish 23 structures at Arden/Guthrie (18 of which are the same). The recommended contractor bid a price of $6,875/unit. Staff is attempting to contact this vendor to obtain the same unit pricing. Again, since the process is being expedited (in terms of shorter time lines to demolish, etc.), it is not anticipated that this pricing will be extended. Lastly, EDA is still in the process of identifying a funding source to demolish these structures. It is anticipated that more detailed information on funding will be brought back to the Community Development Commission at their October 7, 1996 meeting.